The Nation Director of the Pure Resupply Governance Institute (NRGI), Dennis Gyeyir, has referred to as on the government to topic all proposed revisions to the Atlantic Lithium mining settlement to rigorous scrutiny earlier than granting any tax concessions or coverage modifyments.
He pressured that any renegotiated phrases have to be backed by strong financial feasibility research to make sure the nation doesn’t forfeit important income from the rising lithium business below the pretext of declining international costs.
Mr Gyeyir made this name throughout a two-day media have interactionment on Ghana’s lithium fiscal regime and refinery efforts, which ended yesterday in Koforidua. The occasion, organised by NRGI, aimed to construct the capability of journalists to higher perceive Ghana’s function within the international important minerals area and the way worth might be extracted sustainably.
In keeping with him, the institute is worried about latest engagements between the federal government and Atlantic Lithium, which has formally requested a revision of the mining phrases agreed upon in 2023. The corporate has cited a pointy drop in lithium costs—from over $1,000 to about $700—as justification for revisiting fiscal phrases similar to royalties and tax exemptions.
Mr Gyeyir defined that whereas a few of the firm’s considerations are legitimate, any modifyments have to be guided by correct modeling and evaluation, not rushed negotiations.
“We’ve proposed a sliding-scale royalty regime the place the federal government’s share adjusts with international market costs. However neighborhood growth agreements should stay untouched,” he emphasised.
He famous that NRGI’s analysis additionally recommends a re-evaluation of carried curiosity provisions and strengthened tax avoidance safeguards. These embrace benchmarking lithium costs, conducting detailed price audits, and ensuring the Minerals Fee and Ghana Income Authority (GRA) are actively concerned in overseeing firm claims and financials.
On the problem of import duties, he indicated that whereas value-added tax (VAT) concessions on sure mining tools may very well be cheap, blanket exemptions could be inappropriate. “If some tools straight impacts the challenge’s economics, exemptions could also be justified. However wide-ranging tax breaks ought to be prevented,” he said.
Pertaining to Ghana’s lithium refinery prospects, Mr Gyeyir urged the federal government to not rush into constructing a refinery below present financial situations.
“A refinery won’t be viable at present, but it surely may very well be sooner or later. What’s wanted now’s a coherent industrial coverage that lays the muse—expertise development, infrastructure, power, and water,” he stated, highlighting {that a} single refinery would require as much as 90,000 litres of water per day—an unlimited demand given present constraints.
NRGI’s Communications Officer for Africa, Damilare Ogunmowo in his assertion added that the engagement was additionally meant to empower journalists to carry policymakers accountable and inform the general public in regards to the implications of Ghana’s lithium agreements.
He famous that if the government negotiates successfully, the lithium business might grow to be a serious income supply to fund important social infrastructure similar to colleges, hospitals, and job creation initiatives. “We consider journalists have a vital function to play in making certain residents are knowledgeable and might ask the appropriate questions,” he stated.
FROM STEPHANIE BIRIKORANG, KOFORIDUA
